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Financing limit secured by real estate
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Loan type
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Financing limit secured by real estate
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Who may apply
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Citizens and non-citizens of Armenia who are resident in Armenia and are aged 18-65
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Loan purpose
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Personal/family/consumer expenses
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Currency
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Armenian drams, US dollars, Euros
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Form of disbursement
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Credit to the account
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Loan amount
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Yerevan
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Other areas of Armenia satisfactory to the Bank
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If the borrower's creditworthiness is not assessed
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Up to AMD 30 million or its equivalent in another currency
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AMD 20 million or its equivalent in another currency
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If the borrower's creditworthiness is assessed
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Up to AMD 50 million or its equivalent in another currency
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AMD 50 million or its equivalent in another currency
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Term of limit
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The limit is effective for 24 months after approval. The limit will be automatically renewed/reissued for another term of 24 months (w/o further re-approval) if the requirements to the credit history and LTV ratio estimated on the basis of the property re-appraisal have been met.
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Maximum term set for loans issued under the limit
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60 months or such shorter term as may be set for that particular loan type under the limit
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Repayment
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• Annuity (equal payments),
• Differentiated (non-equal payments) (+0.5%),
• Mixed (+0.5%)
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Consumer loan secured by property, within financing limit
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Term
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36 months
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37-60 months
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Nominal interest rate
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15%
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16%
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Attention.
The adjustable nominal interest rate may be revised no more than twice a year. Furthermore, depending on the change of the adjustable nominal interest rate, the threshold above or below which the nominal rate cannot change is ±4%.
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Annual percentage rate
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17.6 - 21%
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Overdraft secured by property, within financing limit
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Annual interest rate
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Annual percentage rate
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AMD
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USD
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EUR
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AMD
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USD
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EUR
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ArCa Classic/
Ayo Visa Classic/
Cirrus Maestro/
Visa Electron
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17.5%
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14.5%
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12.5%
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19.7-23.4%
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15-19.2%
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12.8-16.8%
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Master Card Standard / VISA Classic
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17.5%
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14.5%
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12.5%
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Master Card Gold/VISA Gold/
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16.5%
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13.5%
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11.5%
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Master Card Platinum/VISA Platinum
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16.5%
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13.5%
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11.5%
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Line of credit secured by property, within financing limit
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Master Card Standard / VISA Classic
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17.5%
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14.5%
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12.5%
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20.7-23.1%
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17.2-19.6%
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16.1-18.4%
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Master Card Gold/VISA Gold/
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16.5%
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13.5%
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11.5%
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Master Card Platinum/VISA Platinum
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16.5%
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13.5%
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11.5%
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VISA Infinite
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15.5%
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12.5%
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10.5%
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If the borrower's creditworthiness is not assessed: if the pledged property is an apartment or commercial premises in Yerevan, interest rate applicable to the loan to be issued under the limit +1%.
If the borrower's creditworthiness is not assessed: if the pledged property is a detached house* or a land plot* in Yerevan, interest rate applicable to the loan to be issued under the limit +2%.
If the borrower's creditworthiness is not assessed: if the pledged property is an apartment, or commercial premises*, or a detached house*, or a land plot* in any area in Armenia satisfactory to the Bank, the interest rate applicable to the given loan facility +2%.
If the borrower's creditworthiness is assessed: interest rate applicable to the loan to be issued under the limit.
If the borrower's creditworthiness is assessed: where loan-to-value (LTV) ratio is above 60% if pledged property is in Yerevan, or above 50%, if outside Yerevan, interest rate is increased by 0.5%.
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Loan disbursement lump-sum fee
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0.5% of loan amount or AMD 50,000, whichever is greater
Not applicable to loans secured by cash, bonds issued by Ameriabank or metal accounts
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Repayment frequency
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Monthly
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Guarantee
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Guarantors’ documented income should comprise at least 50% of the borrower's income, and their credit history should meet the criteria set by the Bank.
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Late payment fines and penalties
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The interest rate specified in the loan agreement shall continue to be applied to overdue loans. Fine in the amount of 0.13 % of overdue loan/interest for each day of delay
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Loan formalization venue
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Bank
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Eligible security
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Apartment, commercial premises, detached house and land plot to the reasonable satisfaction of the bank, owned by the borrower or their family member
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Maximum loan-to-value (LTV) ratio (if the loan is secured by real estate, vehicles or plant and equipment, calculation is based on their liquidation value)
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If the borrower's creditworthiness is not assessed
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• If the property is in Yerevan
50% of liquidation value in case of apartments
30% of liquidation value in case of commercial premises
30% of liquidation value in case of detached houses
30% of liquidation value in case of land plots
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• If the property is in other areas of Armenia satisfactory to the Bank
40% of liquidation value in case of apartments
20% of liquidation value in case of commercial premises
20% of liquidation value in case of detached houses
20% of liquidation value in case of land plots*
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If the borrower's creditworthiness is assessed
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• If the property is in Yerevan
70% of liquidation value of the property (apartments)
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• If the property is in other areas of Armenia satisfactory to the Bank
60% of liquidation value of the property (apartments) if the property is in other areas of Armenia satisfactory to the Bank
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Additional security
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The Bank may request guarantee of individuals and/or companies as additional security.
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Property appraisal
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The pledged real estate should be appraised by an appraisal company cooperating with the bank. The company is selected by the client from the offered list.
Appraisal fee: AMD 13,000-30,000* depending on the property.
*On a case-by-case basis, the fee for appraisal of major items of property may be negotiable.
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Insurance of property
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Insurance of the pledged real estate to be maintained throughout the term of loan:
1. If obtained by client: to the extent of at least outstanding principal
2. If obtained by the bank: to the extent of outstanding principal
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Re-appraisal of pledge
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Every 24 months during the term of the limit (for re-issuance of non-utilized limit or part of it) Where a revolving line of credit/overdraft has been issued under the limit, property is re-appraised once in 3 years, except where LTV ratio does not exceed 15%.
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Satisfactory credit history
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Total number of past due days during the previous 2 years should not exceed 30, where the number of consecutive past due days on a case by case basis should not exceed 10. The number of past due days on guarantees past due at the moment of application will be also included in calculation of total number of past due days.
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Early repayment
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5% of prepaid amount, chargeable if early repayment of the whole or part of loan is made during the first 3 years of loan term. Applicable to loans exceeding AMD 15 million where the credit limit has been prepaid in full. Not applicable to loans secured by cash or bonds.
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